Island business is on the upswing, with Langley showing the biggest single percentage increase in taxable retail sales in the county for the second quarter of 2006.

The city reports a 17.5 percent, or $1.2 million increase, to slightly more than $8 million.

The upward trend has been observed in the revenue collected from sales tax for the city, said Debbie Mahler, Langley clerk-treasurer.

The city collected $60,200 in the second quarter of 2006, and $81,448 in the third quarter. That’s compared to last year’s second-quarter total of $60,376 and third-quarter total of $69,311.

Mahler said sales tax started dropping after 2000 and did not come back to the same level until last year.

The trend holds true for the rest of the county.

Coupeville’s taxable retail sales went up by more than $1 million, jumping 12.2 percent to $10.5 million.

Oak Harbor’s taxable retail sales went up 7.2 percent, to about $85 million.

Neil Colburn, Langley mayor and local businessman, said it felt good to beat Oak Harbor and Coupeville by percentage points.

In the past, it didn’t work when city government got involved in local business.

“Historically, the best thing Langley government could do was to get the hell out of the way,” Colburn said.

But recent cooperation has worked, he said.

“I am gratified that the chamber, merchants and city have been working together to make this happen,” he said.

Merchants are traditionally careful admitting that business is well, but Langley merchants agree.

“There is a general consensus,” said Michelle LaRue, president of the Langley Merchants and Professionals Association. “Things have been reenergized.”

“The good weather, the Indian summer brought more people through Langley, not just visitors, but also locals,” she said.

LaRue partially credits new businesses to Langley’s success.

“We have a number of new businesses, very interesting businesses, that added to our community,” La Rue said.

But also the concept of shopping locally and keeping dollars circulating in the island’s economy has fallen on receptive ears in Langley.

“Whidbey Island people have gotten the concept of ‘shop local.’ People coming to my store (Big Sister), are interested in shopping local. They say that,” she added.

According to the Washington state Department of Revenue, countywide sales went up 10.7 percent during the second quarter of 2005, from $188,503,966 to $208,641,633.

Taxable retail sales also increased 10.5 percent in Washington during the second quarter of 2006, the biggest percentage gain in 16 years, according to the Washington State Department of Revenue.

Sales by Washington businesses topped $27.6 billion during the April-through-June period, a $2.6 billion increase over the second quarter of 2005.

Retail trade was up 9.2 percent to $12.3 billion. Retail trade tracks sales at retail outlets and excludes such volatile sectors as construction.

Construction sales were up 19.8 percent to $5.3 billion.

That’s also reflected in local numbers.

The reason why Langley and Coupeville were doing so well is the influx in construction activity, Mahler said.

“When building is up, sales tax is up,” she said.